Yes, it is a PPT Rally
I know some Bulls are getting up-ity, climbing that CAPS later on this FED/PPT rally, believeing themselves market gurus, but they are riding a rally of garbage. The fundamentals of the market are horrific and I do not care how many paid liars they line up in the media to say otherwise.
Zerohedge has the story/video here: http://zerohedge.blogspot.com/2009/05/flagrantly-visible-hand.html
“Something strange happened during the last 7 or 8 weeks. Doreen you probably can concur on this -- there was a power underneath the market that kept holding it up and trading the futures. I watch the futures every day and every tick, and a tremendous amount of volume came in a several points during the last few weeks, when the market was just about ready to break and shot right up again. Usually toward the end of the day – it happened a week ago Friday, at 7 minutes to 4 o’clock, almost 100,000 S&P futures contracts were traded, and then in the last 5 minutes, up to 4 o’clock, another 100,000 contracts were traded, and lifted the Dow from being down 18 to up over 44 or 50 points in 7 minutes. That is 10 to 20 billion dollars to be able to move the market in such a way. Who has that kind of money to move this market?
On top of that, the market has rallied up during the stress test uncertainty and moved the bank stocks up, and the bank stocks issues secondary – they issues stock – they raised capital into this rally. It was perfect text book setup of controlling the markets – now that the stock has been issued…”
Now, when Bernie was caught running a ponzi, all hell broke loose... What is the proper etiquette in this case? Should investors give the utter failure of regulators to safeguard proper market efficiency the ass or the crotch.